Article Originally Published Here
Armaguard has reached a pivotal agreement with its largest clients, securing a $50 million funding injection that will sustain the transporter for the next year. This financial boost will ensure the continued movement of cash across the country, following a series of Reserve Bank of Australia-led meetings highlighting concerns about the viability of the wholesale cash distribution system.
Just months ago, Armaguard, owned by Lindsay Fox, declined a $26 million short-term lifeline. The new deal involves significant contributions from Commonwealth Bank, Westpac, NAB, ANZ, Coles, Woolworths, Bunnings, and Australia Post.
“This collaboration isn’t about competition; it’s about achieving a more efficient Cash-in-Transit industry,” said Peter Fox, Executive Chairman of Linfox Armaguard. “No other country sees major banks, retailers, and distribution companies working together like this.”
Armaguard will also benefit from the expertise of its shareholder, Prosegur, a global leader in cash management. This agreement is designed to sustain the business over the next 12 months.
Anna Bligh, CEO of the Australian Banking Association (ABA), stated that the financial support grants Armaguard the time needed to restructure. “This period allows all parties to explore long-term solutions for sustainable cash access,” Bligh said. “The interdependency of revenue support, efficiency, and capital must all be met.”
Armaguard has shown commitment to these objectives, including capital access where necessary. The Transport Workers Union (TWU) welcomed the deal, which safeguards 1,400 jobs.
“This agreement is a relief for our members who have endured months of uncertainty,” said Emily McMillan, National Assistant Secretary of TWU. “While this provides short-term job security, it’s crucial for banks and retailers to ensure the long-term viability of cash-in-transit services.”
